Daily news: 5th June 2020

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The country’s total foreign exchange reserves fell $1.818 billion to $16.920 billion in May from $18.738 billion in April, a statement issued by the central bank said on Thursday. The forex reserves held by commercial banks rose to $6.558 billion from $6.409 billion. The country’s exports on year-on-year (YoY) basis have witnessed a decline of 33.64 percent, from $2.096 billion to $1.4 billion during May 2019-2020, the Pakistan Bureau of Statistic (PBS) said. The Competition Commission of Pakistan (CCP) has taken notice of the public concerns and complaints regarding the shortage of petroleum products in country and initiated an enquiry to see whether such a shortage is the result of any anti-competitive activity.

Market View: The KSE100 lost 282 points in the last trading session, to close at 34,119.4 points. We expect bearish trend to continue amid rising number of COVID19 cases, falling FX reserves and declining exports. 

Commodities:

Brent oil (USD/bbl): 40.14 (+0.38% D/D)

WTI Crude oil (USD/bbl): 37.44 (+0.08% D/D)

Gold (USD/oz): 1,716.2 (-0.648% D/D)

National News

Forex reserves fall $1.818bln to $16.920bln in May

KARACHI: The country’s total foreign exchange reserves fell $1.818 billion to $16.920 billion in May from $18.738 billion in April, a statement issued by the central bank said on Thursday.

The forex reserves held by commercial banks rose to $6.558 billion from $6.409 billion.

https://www.thenews.com.pk/print/667930-forex-reserves-fall-1-818bln-to-16-920bln-in-may

Trade deficit shrinks 35% to $1.46b

KARACHI: The return of world to normal life from the widespread lockdown and the gradual reopening of businesses around the globe have positively impacted Pakistan’s balance of trade.

https://tribune.com.pk/story/2235691/2-trade-deficit-shrinks-35-1-46b/

CCP takes notice of petroleum products’ shortage

ISLAMABAD: The Competition Commission of Pakistan (CCP) has taken notice of the public concerns and complaints regarding the shortage of petroleum products in country and initiated an enquiry to see whether such a shortage is the result of any anti-competitive activity.

https://www.thenews.com.pk/print/668199-ccp-takes-notice-of-petroleum-products-shortage

Budget 2020-21: APCC approves development outlay of Rs1,319 bn

ISLAMABAD: The Annual Plan Coordination Committee (APCC) on Thursday approved national development outlay of Rs1,319 billion for next budget 2020-21 and recommended to National Economic Council (NEC) for launching Rs100 billion special programme to combat COVID-19 with cost sharing of 50:50 both by Centre and provinces.

https://www.thenews.com.pk/print/668202-budget-2020-21-apcc-approves-development-outlay-of-rs1-319-bn

Freeze non-development expenditure, demands IMF

ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to undertake massive fiscal adjustments of Rs1,150 billion to bring down primary deficit at negative 0.4 percent of GDP for the upcoming budget 2020-21 post COVID-19 pandemic.

https://www.thenews.com.pk/print/667902-freeze-non-development-expenditure-demands-imf

Rs 200 billion disbursed amongst power entities

ISLAMABAD: The government has disbursed Rs 200 billion amongst the power entities after formal approval from the Economic Coordination Committee (ECC) and Cabinet, well-informed sources told Business Recorder.

https://www.brecorder.com/news/1001774/rs-200-billion-disbursed-amongst-power-entities

Airports may be outsourced on competitive bidding basis

ISLAMABAD: The government is likely to outsource major airports on competitive bidding basis instead of to any specific country, well-informed sources told Business Recorder..

https://www.brecorder.com/news/1001775/airports-may-be-outsourced-on-competitive-bidding-basis

Exports register massive decline

ISLAMABAD: The country’s exports on year-on-year (YoY) basis have witnessed a decline of 33.64 percent, from $2.096 billion to $1.4 billion during May 2019-2020, the Pakistan Bureau of Statistic (PBS) said.

https://www.brecorder.com/news/1001771/exports-register-massive-decline

Total outlay of Rs 630 billion proposed for PSDP

ISLAMABAD: A consultative meeting of the Annual Plan Coordination Committee (APCC) proposed a total outlay of Rs 630 billion Public Sector Development Programme (PSDP) for the financial year 2020-2021.

https://www.brecorder.com/news/1001717/total-outlay-of-rs-630-billion-proposed-for-psdp

‘Furnace oil shortfall affecting KE power supply’

KARACHI: Rapid rise in temperatures and increased industrial and commercial activities due to the easing lockdown has caused power demand to peak at 3200MW.

https://www.brecorder.com/news/1001724/furnace-oil-shortfall-affecting-ke-power-supply

‘Opportunist’ OMCs, petrol dealers blamed for ‘artificial’ shortage

ISLAMABAD: The Petroleum Division is cognizant of the “artificial” shortage of POL products that is being created in the country by “opportunist” OMCs and petrol dealers, the spokesperson said and added that the Petroleum Division emphatically states that there is sufficient quantity of petrol stocks in the country.

https://www.brecorder.com/news/1001764/opportunist-omcs-petrol-dealers-blamed-for-artificial-shortage

Unemployment jumps to 8.53% in second year of PTI govt

ISLAMABAD: The Pakistan Tehreek-e-Insaf government (PTI) has proposed a target of 2.3% economic growth for its third year in power while admitting that growth prospects for the current year were “eclipsed by higher inflation and interest rates” much before Covid-19 hit the economy.

https://tribune.com.pk/story/2235887/2-unemployment-jumps-8-53-second-year-pti-govt/

PTI govt to sell dead assets of energy sector

With revenues tumbling in the wake of Covid-19 outbreak, the government has decided to get rid of unutilised and dead assets of state-run oil and gas companies to boost state income.

https://tribune.com.pk/story/2235703/2-pti-govt-sell-dead-assets-energy-sector/

International News

Oil rises slightly as traders await clarity on output cuts

Oil prices were little changed on Thursday as investors awaited a decision from top crude producers on whether to extend record output cuts.The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC+, are debating when to hold ministerial talks to discuss a possible extension of the existing cuts.

https://www.cnbc.com/2020/06/04/oil-markets-crude-output-opec-meeting-in-focus.html

Gold gains 1% as Wall Street rally fizzles, dollar dips

Gold rose more than 1% on Thursday as the dollar retreated and Wall Street paused its recent rally as dismal U.S. trade deficit data overshadowed slightly upbeat jobs numbers and optimism about an economic rebound.

https://www.cnbc.com/2020/06/04/gold-markets-political-tensions-us-dollar-in-focus.html

Asia Pacific stocks mixed ahead of U.S. jobs report

Stocks in Asia Pacific mostly dipped in Friday morning trade as investors await the U.S. nonfarm payrolls report expected later in the day stateside.Mainland Chinese stocks declined in early trade, with the Shanghai composite down 0.15% while the Shenzhen component slipped 0.173%. Hong Kong’s Hang Seng index shed 0.23%.

https://www.cnbc.com/2020/06/05/asia-markets-coronavirus-global-economy-currencies-in-focus.html
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